2019-11-27_PERMIT FILE - M2019058 (10)

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D-21 eastern area,with mining activity pushing to the eastern limit of the mining block, as defined by the west edge of the Ennis Draw"Temporary Mining Deferral Zone". Commencing in Year 7, active pit operations will shift to the west portion of Section 6, with the western initiation line(i.e.,pit entry)being defined by the east edge of the Ennis Draw"Temporary Mining Deferral Zone"; and, the eastern limit being defined by the northwest to southeast oriented Snyder Operating Partnership pipeline and the reserves-defined mine block limit. Year 8 mining activity will continue easterly, as constrained by the Snyder pipeline. On full mine-out of the southwest portion of Section 6, mining will then proceed to the northeast portion,requiring a new box cut entry near the extreme northwest corner of the triangulated area,and will continue to push easterly to the reserves-defined mine block limit. Year 9 mining operations will close out the remainder of Section 6,with pit progression being defined by the presence of multiple pipeline easements or rights-of-way that are present in the northeast quarter of Section 6 and an eastern limit defined by another pipeline corridor (generally coincident with the north- south Section 6 and Section 5 common line. Thereafter, Year 10 mining will recommence east of that rights-of-way corridor(again, requiring a new box cut) and continue easterly to a reserve-defined mining block limit. While gross resource quantification has been completed sufficient to define the overall sequence and mineability of the Section 6 and Section 5 areas, respectively, CSC has not yet fully defined specific operational parameters, pit configuration(s), or direction of advance, etc., due in large to the identified presence of numerous utility rights-of-way, pipelines, and oil and/or gas wellheads within the Year 6 to Year 10 areas. Since in all likelihood that mining activity will encroach to within 200-ft. of, or closer to (in most instances,a 50-ft. set-back has been employed), one or more of these features, CSC has obtained "structure agreements" from each identified party and completed geotechnical analyses to otherwise determine appropriate minimum set-backs. It is anticipated that further analysis of specific lease and related easement and/or right-of-way terms and conditions(as well as other factors)may also be required to provide CSC with the information necessary to further define mine planning parameters in these areas. Given the foregoing mine planning limitations, CSC has defined the general layout of mineable areas to a sufficient level of detail indicative that the Year 6 thru 10 mining activity will generate on the order of 1.1 million cubic yards of growth medium (through pre-stripping), all of which (with the exception of that dedicated toward"advance"reclamation of the South Haul Road)will be utilized in concurrent reclamation activities behind the (advancing) active pit operations areas in any given year. This pre-stripping, as currently defined,encompasses roughly 660 acres of mineable area,which in turn,is anticipated to produce Keenesburg No. 2 Mine_112 Reclamation Operation—November 22, 2019